Charles River Associates Reports First-Quarter Fiscal 2005 Financial Results.BOSTON Boston, town, England Boston, town (1991 pop. 26,495), E central England, on the Witham River. Boston's fame as a port dates from the 13th cent., when it was a Hanseatic port trading wool and wine. Having recovered from a decline in the 18th and 19th cent. -- Surge in Services Demand and FY04 Acquisitions Drive Revenue Growth of 60% and Net Income Growth of 80% E[acute accent acute accent n. A mark (´) indicating: a. that a vowel is close or tense, as é in French été. b. that a vowel or syllable has a high or rising pitch, as in Chinese or Ancient Greek. c. ]Charles River Charles River River, eastern Massachusetts, U.S. The longest river wholly in the state, it flows into Boston Bay after a course of about 80 mi (130 km). Navigable for about 7 mi (11 km), its estuary separates the cities of Boston and Cambridge. Associates Incorporated (Nasdaq: CRAI CRAI Centre De Recherche En Architecture Et Ingénierie (French) CRAI Continuous Regional Arterial Infusion CRAI Consorzio per la Ricerca e le Ipplicazioni di Informatica (Italy) ), an internationally known leader in providing economic, financial, and management consulting Noun 1. management consulting - a service industry that provides advice to those in charge of running a business service industry - an industry that provides services rather than tangible objects services, today reported financial results for the first quarter of fiscal 2005, ended February 18, 2005. E[acute accent]First-quarter revenue increased 60 percent to $61.7 million from $38.5 million for the first quarter of fiscal 2004. Net income for the first quarter of fiscal 2005 increased approximately 80 percent to $4.6 million, or $0.43 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, from $2.6 million, or $0.24 per diluted share, in the first quarter of fiscal 2004. CRA's effective tax rate for the first quarter of fiscal 2005 was 47 percent compared with 43 percent in the first quarter of fiscal 2004. E[acute accent]Comments on the First Quarter E[acute accent]James C. Burrows Burrows is a provincial electoral division in the Canadian province of Manitoba. It was created by redistribution in 1957, and formally came into existence in the provincial election of 1958. The riding is located in the northern part of Winnipeg. , CRA's president and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. , said, "CRA's outstanding performance in the first quarter was driven by positive trends in our litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. and business consulting segments. In litigation, we experienced an upsurge in demand in our Competition practice resulting in part from a significant increase in merger activity in the market. In our Finance practice, revenues also continued to grow as a result of the ongoing financial and securities litigation boom. Revenues of our Intellectual Property practice grew substantially over year-earlier levels, largely as a result of our second-quarter fiscal 2004 acquisition of InteCap, Inc. Nearly all our business consulting practices enjoyed substantial growth as a result of the rebounding economy. In addition, we are seeing a positive impact from our November acquisitions of Tabors, Caramanis & Associates (TCA TCA 1. trichloroacetic acid. 2. tricarboxylic acid cycle (Krebs cycle). TCA Tricyclic antidepressant, see there ) and Network Economics Consulting Group (NECG NECG New England Consulting Group ). Overall, our first-quarter results reflect the strong demand for CRA's distinctive brand of economic, litigation, and business consulting services Noun 1. consulting service - service provided by a professional advisor (e.g., a lawyer or doctor or CPA etc.) service - work done by one person or group that benefits another; "budget separately for goods and services" ." E[acute accent]"CRA See Community Reinvestment Act. achieved consultant utilization of 80 percent in the first quarter, a significant accomplishment in light of typical first-quarter seasonality related to the year-end holidays. With demand up nearly across the board and a lower than usual seasonal impact, revenue grew sequentially in the first quarter for the first time in four years," said Burrows. E[acute accent]Outlook and Financial Guidance E[acute accent]"We are in a favorable position Noun 1. favorable position - the quality of being at a competitive advantage favourable position, superiority advantage, vantage - the quality of having a superior or more favorable position; "the experience gave him the advantage over me" to extend our first-quarter momentum throughout fiscal 2005, as the trends in our target markets continue to generate robust demand for our consulting services," Burrows concluded. "As a result, we are raising our fiscal 2005 guidance. We now expect growth of 30-35 percent in income from operations, net income, and earnings per share, up from our earlier expectation of 25-30 percent growth. These estimates are based on revenue growth at the high end of the 30-35 percent range; a full-year utilization rate at the high-end of our 78-80 percent expectation; an improvement in our anticipated FY05 effective tax rate, which we now expect to be in the range of 44-45 percent, down from our earlier expectation of 45-46 percent; and organic headcount growth of 10 percent. In preparing our EPS (Encapsulated PostScript) A PostScript file format used to transfer a graphic image between applications and platforms. EPS files contain PostScript code as well as an optional preview image in TIFF, WMF, PICT or EPSI, the latter being an ASCII-only format. guidance, in order to estimate potential share dilution Dilution A reduction in earnings per share of common stock that occurs through the issuance of additional shares or the conversion of convertible securities. Notes: Adding to the number of shares outstanding reduces the value of holdings of existing shareholders. , we utilized a stock price of approximately $44, which was the average closing price of the 10 trading days In Business, the trading day is the time span that a particular stock exchange is open. For example, the New York Stock Exchange is, as of 2006, open from 09:30AM to 4:00PM. Trading days never take place on weekends. prior to yesterday. Deviations from this price will cause our earnings per share to vary based on the amount of share dilution from our convertible bond offering," said Burrows. E[acute accent]Conference Call Webcast Information E[acute accent]CRA will host a conference call this morning at 11:00 a.m. ET to discuss its first-quarter fiscal 2005 financial results. To listen to a live webcast of the conference call, please visit the Investor Relations Investor relations The process by which the corporation communicates with its investors. section of CRA's website, www.crai.com. A replay of the call also will be available on the Company's website. E[acute accent]About CRA E[acute accent]Founded in 1965, Charles River Associates is an economics, finance, and business consulting firm Noun 1. consulting firm - a firm of experts providing professional advice to an organization for a fee consulting company business firm, firm, house - the members of a business organization that owns or operates one or more establishments; "he worked for a that works with businesses, law firms This list of the world's largest law firms by revenue is taken from The Lawyer and The American Lawyer and is ordered by 2006 revenue:[1]
Spanish Ciudad de México City (pop., 2000: city, 8,605,239; 2003 metro. area est., 18,660,000), capital of Mexico. Located at an elevation of 7,350 ft (2,240 m), it is officially coterminous with the Federal District, which occupies 571 sq mi , Sydney, Toronto, and Wellington, CRA also has U.S. offices in Cambridge, Chicago, College Station, Dallas, Houston, New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of , Oakland, Pasadena, Philadelphia, Salt Lake City, Silicon Valley, and Washington, D.C. E[acute accent]Statements in this press release concerning the future business, operating results, and financial condition of the Company and statements using the terms "anticipates," "believes," "expects," "should," or similar expressions, are "forward-looking" statements as defined in the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. These statements are based upon management's current expectations and are subject to a number of factors and uncertainties. Information contained in these forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. is inherently uncertain and actual performance and results may differ materially due to many important factors. Such factors that could cause actual results to differ materially from any forward-looking statements made by the Company include, among others, changes in the Company's effective tax rate, share dilution from the Company's convertible debt offering, dependence on key personnel, attracting and retaining qualified consultants, dependence on outside experts, utilization rates, risks associated with acquisitions, risks inherent in international operations Internal Operations (I.O., IO or I/O) is a fictional American Intelligence Agency in Wildstorm comics. It was originally called International Operations. I.O. first appeared in WildC.A.T.S. volume 1 #1 (August, 1992) and was created by Brandon Choi and Jim Lee. , NeuCo's performance, management of new offices, dependence on growth of the Company's business consulting practice, the ability of the Company to integrate successfully new consultants into its practice, intense competition, and professional liability. Further information on these and other potential factors that could affect the Company's financial results is included in the Company's filings with the Securities and Exchange Commission. The Company cannot guarantee any future results, levels of activity, performance or achievement. The Company undertakes no obligation to update any of its forward-looking statements after the date of this press release.
CHARLES RIVER ASSOCIATES INCORPORATED
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share data)
Twelve Twelve
Weeks Weeks
Ended Ended
--------- ---------
Feb. 18, Feb. 20,
2005 2004
--------- ---------
Revenues $61,724 $38,501
Costs of services 36,912 21,960
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Gross profit 24,812 16,541
Selling, general and administrative 15,817 11,639
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Income from operations 8,995 4,902
Interest and other income (expense), net (540) (201)
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Income before provision for income taxes and
minority interest 8,455 4,701
Provision for income taxes (3,974) (2,021)
--------- ---------
Income before minority interest 4,481 2,680
Minority interest 138 (107)
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Net income $4,619 $2,573
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Net income per share:
Basic $0.46 $0.25
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Diluted $0.43 $0.24
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Weighted average number of shares outstanding:
Basic 9,945 10,183
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Diluted 10,795 10,734
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CHARLES RIVER ASSOCIATES INCORPORATED
CONSOLIDATED BALANCE SHEETS
(In thousands)
Feb. 18, Nov. 27,
2005 2004
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Assets
Cash, cash equivalents and short-term investments $73,728 $67,811
Accounts receivable and unbilled, net 78,671 75,531
Other current assets 15,780 19,480
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Total current assets 168,179 162,822
Property and equipment, net 18,901 18,528
Goodwill and intangible assets, net 94,335 94,509
Long-term investments - -
Other assets 13,116 12,952
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Total assets $294,531 $288,811
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Liabilities and stockholders' equity
Current liabilities $61,865 $61,503
Long-term liabilities 100,013 100,282
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Total liabilities 161,878 161,785
Total stockholders' equity 132,653 127,026
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Total liabilities and stockholders' equity $294,531 $288,811
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